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lb} Assume hedger takes hedge ratio as h *, i.e, if the risk exposure is a long position of 100 units of spot commodity, to

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lb} Assume hedger takes hedge ratio as h *, i.e, if the risk exposure is a long position of 100 units of spot commodity, to hedge the risk, hedger will short 100h* futures underlying on that commodity. Please answer the questions in the right panel in analogy to the left panel, by lling the blanks in j) r] below [6 marks in total, 0.5 marks each]

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